Michael Saylor’s MicroStrategy To Boost Bitcoin Strategy With This Move

Michael Saylor’s MicroStrategy is poised to take a bold step in its Bitcoin acquisition strategy. The company plans to increase its authorized Class A common shares from 330 million to 10.3 billion. The proposal, expected to pass in a shareholder vote on January 21, could provide MicroStrategy with an unprecedented ability to raise funds for its Bitcoin strategy.

Michael Saylor’s MicroStrategy To Authorize 10.3B Shares for BTC Plans

According to a Bloomberg report, MicroStrategy Inc. intends to increase its authorized Class A common shares from 330 million to 10.3 billion. This move aligns with the company’s focus on financing its ongoing Bitcoin acquisition strategy.

Michael Saylor, co-founder and chairman of MicroStrategy, holds 47% of the company’s voting power. This strong influence is expected to aid the approval of the proposal during the upcoming shareholder vote. Analysts predict the decision will enhance MicroStrategy’s ability to raise funds through share sales, boosting its Bitcoin-focused growth strategy.

Earlier this week, MicroStrategy announced boosting its Bitcoin holdings with the acquisition of 2,530 BTC for $243 million. Consequently, this move increased its total holdings to 450,000 BTC. The company acquired Bitcoin at an average price of $95,972 per BTC. This purchase was funded using proceeds from its recent stock sales under a sales agreement, as disclosed in an SEC filing.

What the Proposal Means For The Company

If the proposal passes, MicroStrategy could rival major corporations such as Amazon and Alphabet in the volume of authorized shares. While Alphabet currently has 300 billion authorized shares, MicroStrategy’s proposed 10.3 billion shares would place it among the largest companies by authorized share count on the Nasdaq 100 Index.

Despite concerns about shareholder dilution, analysts believe investors might remain supportive due to the company’s historic returns. Since adopting its Bitcoin strategy in 2020, MicroStrategy’s shares have surged over 2,500%, with BTC prices rising nearly 800% in the same period.

According to reports, Michael Saylor’s MicroStrategy purchased $22.07 billion worth of Bitcoin in 2024, acquiring 258,320 BTC at an average price of $85,450 per coin. The company recorded an impressive BTC yield of 74.3% during the year. Saylor highlighted that Bitcoin gains translated to $14.06 billion in shareholder value creation.

Leveraging Shares to Strengthen Bitcoin Strategy

MicroStrategy plans to utilize the additional shares for private transactions, at-the-market equity sales, and convertible note settlements. The company has already raised $21 billion through share issuances under its current plan, with $6.5 billion remaining for future funding.

Saylor has stated that the company aims to “build more intelligent leverage” as part of its financing efforts. By increasing authorized shares, MicroStrategy could secure the flexibility needed to continue its Bitcoin purchasing strategy.

The shareholder vote on January 21 will determine the approval of the amendments. Alongside increasing Class A common shares. More so, the company seeks to raise its authorized preferred stock from 5 million to 1 billion.

Meanwhile, Bitcoin price has continued its bullish rally, surging 10% in the last 7 days and touching $105K. The cryptocurrency’s market cap has crossed $2.06 trillion, reflecting strong investor sentiment. Trading volume has also spiked by 20.44% to $65.9 billion, signaling increased market activity.

The post Michael Saylor’s MicroStrategy To Boost Bitcoin Strategy With This Move appeared first on CoinGape.